Canadian Police Seeks Public Help with Multiple Bitcoin Frauds: 4 Suspects Wanted

By The Canadian Press

In the case of this Bitcoin ATM brand, it appears it was crediting unconfirmed transactions to allow money to be withdrawn before it received the suspect's Bitcoin.

Yesterday, Toronto police issued a statement requesting public help to locate four men suspected of carrying out a string of Bitcoin BTC scams across Canada.

The Calgary Police Service cybercrime team's investigation began in October 2018 when officers were tipped off to a major fraud involving transactions that target a Canadian bitcoin company.

According to the Canadian news outlet, CBC, the 4 Canadian men are wanted in connection with conducting double-spend attacks against Bitcoin ATMs in four different cities. The men are now on the run, and Calgary police are looking for them.

Police say the suspects were committing "double-spend" attacks and would visit a bitcoin kiosk and successfully withdraw money before cancelling their transaction before the bitcoin company would process the withdrawal.

The first suspect on their radar is believed to be the brain behind the attacks in Hamilton, Montreal, Ottawa, and Toronto; the second suspect is reportedly responsible for the 51 fraudulent transactions in Calgary; and suspects #3 and #4 allegedly responsible for the attacks in Winnipeg and Sherwood Park respectively.

Bitcoin scheme suspect number one.

The police asked the public assistance in identifying the people involved in the crimes. The goal of 0-conf is to create instantaneous transactions for instances when the 10-minute Bitcoin transaction throughput time would not be convenient. Further, there is a "double spend" tool that also seems to be at the heart of the transactions. The first pays the specified amount to the specified address.

Four suspects with what police describe as "in-depth knowledge or interest in cryptocurrency, bitcoin and/or blockchain technology" are accused of defrauding the bitcoin company of almost $200,000 through "double spend attacks".

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